enabling towns to adopt budget caps.

SB 105 allows New Hampshire towns to adopt a budget cap that limits annual spending increases. The cap sets a maximum total budget equal to the previous year's per-resident spending multiplied by the town's population, plus an annual inflation adjustment using either the U.S. Bureau of Labor Statistics index or the Municipal Cost Index. Towns can override the cap with a 3/5 majority vote at a special ballot vote (not on officer election ballots), but must reduce spending if the override fails. Adoption requires a 3/5 vote of residents on a specific ballot question, with public hearing requirements, and applies to towns using annual town meetings for budgeting.